New Delhi: Stock exchange BSE will suspend trading in securities of as many as five companies from July 17 as they failed to comply with certain norms for two consecutive quarters.
In case they comply with the norms by July 13, they would not face trading suspension.
The firms that face suspension are Bhuwalka Steel Industries, Indo-Asian Projects, Shreejal Info Hubs, Smilax Industries and Western India Shipyard.
The exchange has also ordered freezing of the entire promoter shareholding of these companies from today till further notice.
“Trading in securities of the companies (5) will be suspended with effect from July 19, 2016 (being 21 days from issue of this notice) on account of non-compliance with Regulation 55 A of the Sebi (Depositories and Participants) Regulations, 1996 for two consecutive quarters – December 2015 and March 2016,” BSE said in a circular issued on Monday.
The exchange said the suspension will continue till such time these firms comply with the norms including payment of fines.
The exchange said 15 days after suspension, trading in the shares of non-compliant companies would be allowed on restricted basis or in “Trade for Trade basis in Z group” only on the first trading day of every week for six months.
“Revocation of suspension would be subject to the companies further complying with the procedure and all extant norms prescribed for revocation of suspension,” it added.
As per Sebi’s Depositories and Participants Regulation 55 A, every firm will have to submit audit report on a quarterly basis to the bourse for reconciliation of total issued capital, listed capital and capital held by depositories in dematerialised (demat) form and the details of changes in share capital during the quarter and the in-principle approval obtained by the issuer from all exchanges.